Sensex, Nifty trade in green

Key India equity benchmarks traded in green terrain in late afternoon session, despite weak opening in European markets. Buying at IT and Realty counters along with gains led by major industry leaders like Infosys and Reliance Industries, helped the markets to keep their heads above neutral lines. Some comfort also came with CRISIL Research expecting 2018-19 to be a good one for India’s small and medium enterprise (SME) leather exporters, given a pick-up in demand from the US and expectations of the Donald Trump administration imposing tariffs on Chinese leather footwear - not in the tariff list currently - early next calendar year. Traders paid no heed towards SEBI’s latest report stating that Indian companies raised funds worth Rs 36,176 crore by issuing securities on public and private placement basis during October, registering a decline of 17% compared to September. The street even overlooked the latest data from the World Trade Organization (WTO) showing that global trade growth is likely to further diminish in the ongoing quarter. The index for WTO’s latest World Trade Outlook Indicator (WTOI) for October-December stood at 98.6, the lowest since October 2016. It was 100.3 for July-September.

On the sectoral front, auto stocks were trading higher, aided by industry body CII’s report that the domestic automotive aftermarket, which has grown at a compounded annual growth rate (CAGR) of 14% in the last five years, is expected to touch Rs 75,000 crore by 2020, while metal stocks were lingering in losses, amid private report that aluminium companies floundered in domestic sales during the July-September quarter of this fiscal despite robust demand and firm production growth. Further, tyre stocks remained in limelight after India's natural rubber imports in October jumped 63% from a year ago to 62,047 tonnes, as local consumption surged amid drop in overseas prices.

On the global front, European markets were trading in red, as German business confidence eased for a third consecutive month in November as the economy is cooling down. The results of the survey by the Ifo Institute showed that the Ifo business confidence indicator fell to 102 from 102.9 in October, which was revised from 102.8. The street had expected a reading of 102.3. Asian markets were trading in red, after US President Donald Trump said he would likely raise the punitive tariffs on $200 billion of Chinese goods. He also threatened to impose tariffs on all remaining Chinese imports, if upcoming trade talks fail to produce a deal. Adding more worries, profit growth at China's industrial firms slumped for a sixth straight month in October as demand cooled further amid mounting uncertainties stemming from the US-China trade war. As per the National Bureau of Statistics (NBS), industrial profits rose 3.6% in October from a year earlier, slowing from September's 4.1% gain.

The BSE Sensex is currently trading at 35419.36, up by 65.28 points or 0.18% after trading in a range of 35262.97 and 35501.70. There were 13 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.07%, while Small cap index was up by 0.28%.

The top gaining sectoral indices on the BSE were IT up by 1.19%, Realty up by 0.95%, TECK up by 0.94%, Energy up by 0.79% and Power up by 0.57%, while Healthcare down by 0.95%, Metal down by 0.77%, Telecom down by 0.67%, FMCG down by 0.36% and Consumer Durables down by 0.35% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.21%, Reliance Industries up by 1.30%, TCS up by 1.29%, NTPC up by 1.25% and Indusind Bank up by 1.21%. On the flip side, Sun Pharma down by 3.16%, Hero MotoCorp down by 2.73%, Bajaj Auto down by 2.31%, Wipro down by 1.99% and Bharti Airtel down by 1.75% were the top losers.

Meanwhile, in order to protect the domestic players and to discourage cheap imports, the commerce ministry's investigation arm--Directorate General of Trade Remedies (DGTR) has recommended continuation of anti-dumping duty on ‘Methylene Chloride' chemical for five years, imported from the European Union and the US.

After the investigation, DGTR which ensures a level playing field to the Domestic Industry against the adverse impact of the unfair trade practices, found that there is a continued dumping of the said chemical from the EU and the US which causes injury to domestic industry. The investigation arm also concluded that growth of the domestic industry was negative in terms of the economic parameters such as production, sales, and profitability during the period of investigation--January-December 2017.

Meanwhile, Gujarat Fluorochemicals and Chemplast Sanmar had appealed to DGTR for review and continuation of the duties on these imports. The companies alleged continuation of dumping of Methylene Chloride from the EU and the US.

The CNX Nifty is currently trading at 10646.05, up by 17.45 points or 0.16% after trading in a range of 10596.35 and 10677.00. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Infosys up by 2.28%, Bajaj Finserv up by 2.11%, HCL Tech. up by 1.84%, Indusind Bank up by 1.36% and TCS up by 1.29%. On the flip side, Hero MotoCorp down by 3.45%, Sun Pharma down by 3.21%, JSW Steel down by 2.55%, Bajaj Auto down by 2.17% and Bharti Airtel down by 2.14% were the top losers.

Asian markets were trading mostly in red; Straits Times decreased 4.15 points or 0.13% to 3,089.23, Hang Seng declined 44.22 points or 0.17% to 26,331.96, Jakarta Composite fell 19.88 points or 0.33% to 6,002.90 and Shanghai Composite was down by 1.13 points or 0.04% to 2,574.68. On the flip side, Nikkei 225 increased 140.40 points or 0.64% to 21,952.40, KOSPI added 16.40 points or 0.78% to 2,099.42 and Taiwan Weighted was up by 13.26 points or 0.14% to 9,778.62.

All European markets were trading in red; UK’s FTSE 100 decreased 12.23 points or 0.17% to 7,023.77, France’s CAC lost 5.07 points or 0.1% to 4,989.91 and Germany’s DAX was down by 8.25 points or 0.07% to 11,346.47.